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AIIB approves $285m loans, expands advisory panel

The Beijing-based multilateral has approved total financings of more than $2bn since it was formally established last January.

The Asian Infrastructure Investment Bank has approved three loans totalling $285 million, bringing its total lending to more than $2 billion since it began operating in January 2016.

Two of the approved loans will support Indonesian projects, both co-financed with the World Bank. That include a $125 million loan for a dam operational improvement project in Indonesia to ensure water supply security, and a $100 million loan for supporting the Indonesia Regional Infrastructure Development Fund. 

The latter is to create a $400 million vehicle managed by state-owned infrastructure finance company Sarana Multi Infrastrukur to increase access to infrastructure finance at the subnational level. The World Bank is contributing a $100 million financing to the fund, with the remaining $200 million in equity to be committed by the Indonesian government. 

The third loan is a co-financing project with the Asian Development Bank, supporting an improvement project of natural gas infrastructure in Bangladesh. The AIIB is providing a $60 million to the project that addresses the gas supply deficit in the South Asian country. 

This week, the bank also named Ngaire Woods of the Blavatnik School of Government at the University of Oxford as the eleventh member of its international advisory panel. Woods is the founding dean of the public policy school and professor of global economic governance. She has also served as an advisor to the IMF Board, the UNDP, and the Commonwealth heads of government. 

The panel was established last October, providing support to the president and senior management on the bank’s strategies and policies, as well as on general operational issues. Woods joins other panel members including former Pakistani Prime Minister Shaukat Aziz, former Finance Minister of Sweden Anders Borg and Yukio Hatoyama, former Prime Minister of Japan.